An empirical examination of switching cost investments in business‐to‐business marketing relationships

Abstract

The concept of switching costs or transaction‐specific investments has been widely used in theoretical models of industrial buyer‐seller relationships. Yet there are few empirical studies that have examined the dimensionality of switching costs. The purpose of this study is to investigate empirically the dimensions of switching costs. Different typologies, or dimensions, of switching costs are identified from a review of the literature. Measures of these dimensions are developed and empirically tested for construct and pragmatic validity using confirmatory factor analysis and structural equation modelling. Two switching cost dimensions are identified and validated: hard assets and soft assets.

Citation

Nielson, C.C. (1996), "An empirical examination of switching cost investments in business‐to‐business marketing relationships", Journal of Business & Industrial Marketing, Vol. 11 No. 6, pp. 38-60. https://doi.org/10.1108/08858629610151299